Biotech Values

[DewDiligence]

…valuation cannot simply look at the value of the cash and royalties. It must discount and deduct the NPV of the losses. Admittedly, the first half of that calculation does offer an interesting perspective - which DD has proffered.

I disagree. The ongoing operating losses are part of the R&D business, which should be valued separately from the Lovenox royalty stream and the balance-sheet cash in a sum-of-parts analysis for valuation purposes. This is how a public or private company thinking about an acquisition would analyze it.